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Finding the present value of multiple cash flows using a spreadsheet

Time until CF Cash flow Present value Formula in Col C


0 8000 $8,000.00 =PV($B$10, A4,0,-B4)
1 4000 $3,703.70 =PV($B$10, A5,0,-B5)
2 4000 $3,429.36 =PV($B$10, A6,0,-B6)

SUM: $15,133.06 =SUM(C4:C6)

Discount rate: 0.08

Notice that the time until each payment is found in column A.


Once we enter the formula for present value in cell C4, we can copy it to cells C5 and C6.
The present value for other interest rates can be found by changing the entry in cell B10.
Alternative
formula for Col C
=B4/(1 + $B$10)^A4
=B5/(1 + $B$10)^A5
=B6/(1 + $B$10)^A6

=SUM(D4:D6)

t to cells C5 and C6.


he entry in cell B10.